Securities Act of 1933

As of July 30, 2002 the Sarbanes-Oxley (SOX) Act was passed. The Act has affected both the principles and assumptions of accounting and financial reporting. As your new financial advisor I will explain the important changes made by the SOX act and who is impacted by it. Section One The Sarbanes-Oxley (SOX) Act was the reaction to major corporate and accounting scandals, including Enron and WorldCom. The goal of the act is to thwart and dissuade future accounting fraud, safeguard shareholders and…

Franklin Delano Roosevelt in 1933, and was enacted until 1938. The New Deal put the government into the…

destroyed agriculture. The American people expected action from Herbert Hoover, but didn't get much. Herbert Hoover believed, that the depression would work itself out. Thus, Hoover was not re-elected. In hopes of getting out of the Great Depression, in 1933 the American people elected Franklin D Roosevelt for a New Deal. The New Deal was effective, because it employed people, and created programs that benefited society. The New Deal eased people's fears and anxiety. To communicate with the…

violating security laws and defrauding investors. The SEC is in charge of "protecting investors, maintaining fair and orderly functioning securities markets, and functioning capital formation," and according to Securities Act of 1933 they " require that investors receive financial and other significant information concerning securities being offered for public sale;…

On March 4, 1933, Franklin Delano Roosevelt was sworn in as the President of the United States of America. On this day, he gave his first inaugural address to the American people. He pledged “an end the bureaucratic stagnation that plagued the administration of his predecessor.” (Pbs). He promised to lift America out of the worst economic depression, it had ever seen with rapid action. Roosevelt won the Presidential nomination over Herbert Hoover by an outstanding margin. March 4th, 1933 marks…

that came out of the New Deal were good and are still in use today such as the FDIC and Social Security. There were other policies that possibly did more damage than good even though they had good intentions. Although the public works projects created many new jobs there were several policies signed that were meant to help the economy, but ended up while more unemployment. The National Industrial Act (1933) was one of those policies that meant well and looked good on paper, but hurt the…

useful to look at a massive multi-national company that reached number 5 on the Forbes Fortune 500 list: Enron. Enron was a corporation that had made many illegal financial decisions such as insider trading, lying on accounting forms, and committing securities fraud. These decisions caused Enron to go bankrupt and caused several of their executives to wind up in jail6. These cases are very well known and illustrate how in the financial sector no matter how big or small a company or private…

for an act that would limit the use of bank credit for speculation and to direct bank credit into what more fruitful uses, such as industry, commerce, and agriculture. In response to these concerns, the main requirement of the Banking Act of 1933 was to separate commercial banking from investment banking. Basically, commercial banks, which took in deposits and made loans, were no longer allowed to finance or deal in securities , while investment banks, which financed and dealt in securities,…

The Great Depression “(Stockbrokers) Hollard (sic) and screamed, they clawed at one another’s collars. It was like a bunch of crazy men.” “The great buildings were ablaze with lights all night as sleepy clerks fought desperately to get accounts in shape for Monday opening” (“The Wall Street Crash”). This is how journalist Jonathan Leonard described the day the stock market crashed on October 28 1929 - the day that triggered the great depression. The Great Depression of 1930’s had great impact…

liable for issuing an incorrect opinion on Cardozo & Co.’s financial statements. Investors who purchased shares at the IPO and those who purchased shares in anticipation of the merger can sue me, the auditor, since under section 11 of the Securities Act of 1933 I am an expert who issued an opinion on Cardozo & Co.’s financial statements and they relied on that information to invest on the firm. Just the fact that the investor suffered a loss because of my work, is enough for me to be held liable…